Head to Head Contrast: Woori Bank (WF) and First NBC Bank Holding (OTCMKTS:FNBC)

First NBC Bank Holding (OTCMKTS: FNBC) and Woori Bank (NYSE:WF) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Insider & Institutional Ownership

73.9% of First NBC Bank Holding shares are owned by institutional investors. Comparatively, 0.3% of Woori Bank shares are owned by institutional investors. 8.4% of First NBC Bank Holding shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares First NBC Bank Holding and Woori Bank’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
First NBC Bank Holding N/A N/A N/A $3.09 0.04
Woori Bank N/A N/A N/A $4.81 10.02

First NBC Bank Holding is trading at a lower price-to-earnings ratio than Woori Bank, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for First NBC Bank Holding and Woori Bank, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First NBC Bank Holding 0 3 0 0 2.00
Woori Bank 0 1 1 0 2.50

First NBC Bank Holding currently has a consensus price target of $4.83, indicating a potential upside of 3,705.77%. Woori Bank has a consensus price target of $7.00, indicating a potential downside of 85.48%. Given First NBC Bank Holding’s higher probable upside, research analysts plainly believe First NBC Bank Holding is more favorable than Woori Bank.

Profitability

This table compares First NBC Bank Holding and Woori Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First NBC Bank Holding 10.67% 3.71% 0.33%
Woori Bank 15.60% 7.17% 0.47%

Dividends

Woori Bank pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. First NBC Bank Holding does not pay a dividend. Woori Bank pays out 16.6% of its earnings in the form of a dividend.

Volatility & Risk

First NBC Bank Holding has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Woori Bank has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Summary

Woori Bank beats First NBC Bank Holding on 7 of the 12 factors compared between the two stocks.

About First NBC Bank Holding

First NBC Bank Holding Company is a bank holding company. The Company offers a range of financial services through its banking subsidiary, First NBC Bank. The Company operates through community banking segment. It offers financial services to businesses, institutions and individuals in southeastern Louisiana and the Florida panhandle. The Company’s primary focus is on commercial real estate and commercial lending. Its loans include construction loans, commercial real estate loans, consumer real estate loans, commercial and industrial loans, and consumer loans. Its securities portfolio consists primarily of the United States Government agency obligations, mortgage-backed securities, and municipal securities, although the Company also holds corporate bonds. The Company’s primary source of funding for its loans is deposits. Its deposits include noninterest-bearing demand, negotiable order of withdrawal (NOW) accounts, money market accounts, savings deposits and certificates of deposit.

About Woori Bank

Woori Finance Holdings Co., Ltd. is a financial holding company. The Company serves over 24 million corporate and retail customers with a range of financial services, including commercial banking, credit card, capital market, international banking, wealth management and bancassurance services. The Company’s domestic network consists of more than 1,300 branches and 8,500 cash terminals. Its banking subsidiaries include Woori Bank, Kwangju Bank and Kyongnam Bank. Its non-banking subsidiaries include Woori Investment & Securities, Woori AVIVA Life Insurance, Woori CS Asset Management, Woori Financial, Woori Finance Information System, Woori F&I and Woori Private Equity.

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